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Helping Operators during ‘Perfect Storm’ – Superior Anhausner Tells DSRs to Interact with Customers |
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L.A. Distributor Helps Operators with Delayed Credit Repayment Program
NEW YORK – Ever since the economy turned south, precipitating a drop in restaurant business, Superior Anhausner Foods, Los Angeles, has been pushing its nearly two dozen DSRs to be more interactive with their accounts and probe them for their most troubling issues, according to Danny O’Malley, vice president of sales and marketing.
O’Malley said in a recent interview with ID that the distributorship, which has been in business in Southern California since the late 1980s, discovered that for his accounts, many of which have lost 15-30% of their revenues, the top issues deal with finances and paying their bills.
“We’re trying to be as innovative as we can to help our customers,” he said, explaining a three-month-old credit program that allows his customers to hold on to their money two to four times longer than normal after placing their purchases. This payment flexibility gives its customers the ability to postpone paying the distributor’s invoices for 60 days, without interest fees.
O’Malley said the broadliner, which services about 1,000 customers, devised this program in conjunction with Green Sky Financial and Master Card.
“With normal payments running between 15 and 30 days, depending on a customer’s credit rating, you can only imagine how valuable it is for our customers to have 60-day terms and hold on to their money a little bit longer,” he said, adding that pushing back payment for two months alleviates restaurateurs of the debilitating risk of losing its positive credit rating.
| “We’re trying to be as innovative as we can to help our customers.” |
The distributorship, a member of Pocahontas Foods USA, Richmond, VA, , a unit of Progressive Group Alliance, launched the program with a small group of customers to make sure that it is error free and the marketplace understands that the company is helping its accounts survive the recession, O’Malley explained. It is now available to all of its customers.
“Our accounts sign up for the credit program just like they sign up for any Master Card Credit card. They have 60 days to pay their first bill. If they don’t, and leave a balance, then they will be charged interest,” he said.
In addition to the extended payment program, O’Malley said he and the DSRs have also been saving their customers money by working on ways to consolidate their purchases and deliveries, which ultimately reduces costly internal bureaucratic hassles.
Recently they helped the owner of two small Italian upscale restaurants, who’s on the verge of opening a third unit, eliminate half of its suppliers. O’Malley said he pointed out to the operator that with the high cost of fuel the distributor is better able to control delivery expenses and save the account money by placing more of its orders on one truck.
“Consolidating purchases with fewer distributors will ultimately save the operator money, at least 2%, which in today’s environment is beneficial to the restaurateur,” O’Malley said.
O’Malley explained that consolidating purchases and deliveries is more advantageous to the operator than just dropping the price because restaurateur is reducing the number of trucks pulling up to its backdoors, invoices that he has to process and checks that he has to cut.
“Every time an operator cuts back on labor or processes, he’s not only going to save time but also money,” O’Malley said.
Superior Anhausner has is also enhancing its bold entrance into Internet-based food shows for its operators. (Read story in Aug. 1 edition of ID Report.) This venue gives the company’s accounts the ability to shop for the latest products 24/7 for two weeks, with having to leave their businesses. O’Malley said more than 80% of his customers attended the second installment of this unique approach to doing business along the foodservice supply chain.
With comments and questions, contact The Editor. |
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